2016-05-15

Unfinished Buildings Everywhere in Fugu County, Shanxi

Notice the location of Fugu, southeast of Ordos. It was one of China's top 100 counties with GDP of 40 billion yuan, but it's more than 10 square kilometer new city is littered with empty and unfinished buildings. The local government spent more than 15 billion building 160,000 square meters, but now billions stand frozen in abandoned construction projects in sports, schools, government offices and hospitals. Home prices have fallen 50 percent to 60 percent. This isn't a new ghost city, I did a post on Fugu back in 2014: Second Major Ghost City Emerges

Why is it a story now? Most of the capital for real estate development came out of the coal industry, which has been limping along for years thanks to easy credit.....but now they are starting to have a "headache."

It is noteworthy that, after a decade in Fugu New District started construction of "pie", the frequency is unfinished projects, so that developers and governments are beginning to feel "a headache."

The article doesn't say if Fugu county government plans to swap their bank loans for muni bonds.